Hans Hufschmid Introduces Hedge Fund Industry Tracker
Hans Hufschmid, a former London co-head of Long-Term Capital Management, has launched the first hedge fund-industry tracker fund called Altß.
The launch of Altß by Hans Hufschmid takes place amid widespread disillusion with traditional “funds of funds”. These were once a popular way for institutional investors to get access to elite hedge funds but have been plagued by high fees and underperformance.
Altß is to build a portfolio of investments designed to mirror the broad fund universe, with higher weightings for the most common hedge fund strategies such as long-short equity and fixed-income trading.
“The trend is towards indexes in everything,” Mr Hufschmid told the Financial Times. “That option exists in equities and in fixed income, but it does not exist in hedge funds in an efficient manner. What does it even mean to track the industry? There is no FTSE 100 or S&P 500 to track.”
Mr Hufschmid, who began his career on the bond desk at Salomon Brothers in London, was a principal at LTCM for five years and one of two leaders in the UK, where he served on its risk management and management committees at the time of its near-collapse in 1998. The highly leveraged company was bailed out by its creditors in an emergency deal brokered by the US Federal Reserve.Source: Financial Times